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UST ordered to pay $350M
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March 29, 2000: 12:07 p.m. ET
Kentucky jury awards tobacco competitor damages in antitrust suit
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NEW YORK (CNNfn) - A Kentucky jury ordered chewing tobacco maker US Tobacco Inc. (UST) to pay $350 million in damages to rival Conwood Co. in a federal antitrust suit, UST said Wednesday.
The verdict could be trebled under federal antitrust laws once it is entered as a judgment.
UST said it would appeal the Paducah's jury's verdict in the next 10 days, seeking to have it overturned or request a new trial.
Stock in the company dropped 2-7/16 to 16-15/16 in Wednesday afternoon trading.
 "We believe that the plaintiff failed to prove its case under applicable law, especially in light of the voluminous evidence which clearly shows that U.S. Tobacco and Conwood compete in a highly competitive marketplace, " said
UST (UST: Research, Estimates) Chairman and Chief Executive Officer Vincent Gierer.
UST, the No. 1 U.S. maker of smokeless tobacco commands about 79 percent of the market with brands that include Copenhagen, Rooster and Red Seal.
In the suit, Conwood, a distant No. 2 to UST in the U.S. smokeless tobacco business, alleged that UST had maintained its dominant position through anticompetitive business practices.
Court records indicated Conwood, whose top selling Kodiak brand contributes to its 13 percent matkert share, complained that UST falsely spread rumors saying its tobacco contained fiberglass and was stale, in addition to covering Conwood's sale displays in stores.
Conwood
Both parties also accused each other of stealing retail and advertising displays. 
-- from staff and wire reports
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